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Private Limited Company – An Overview

The Companies Act, 2013 (India) governs the incorporation, regulation, and winding up of companies in India. It specifies procedures for registering a private limited company with the Registrar of Companies (ROC).

A private limited company is a business entity where ownership is restricted to a small number of shareholders, and shares cannot be publicly traded. Shareholder liability is limited to their investment in the company, and a private limited company can have up to 200 shareholders. The company’s registration and operations are governed by the Ministry of Corporate Affairs (MCA).

Advantages of Registering as a Private Limited Company

One major advantage of a private limited company is its flexible management structure. Other benefits include:

  • Limited Liability Protection: Shareholder liability is limited to their investment, protecting personal assets.
  • Separate Legal Entity: The company is recognized as a legal entity, distinct from its shareholders.
  • Perpetual Succession: The company continues to exist until legally dissolved, unaffected by changes in ownership.
  • Easy to Raise Capital: Capable of raising funds through equity shares, facilitating business growth.
  • Trustworthiness: Enhanced transparency and trust due to public access to company details.
  • Free and Easy Transferability of Shares: Shares can be transferred without affecting company operations.
  • Owning Property: Can own assets and properties in its name independently.
  • Dual Relationship: Shareholders can also be employees, improving operational efficiency.
  • Capacity to Sue and Be Sued: Can initiate legal proceedings and be party to lawsuits.
  • Borrowing Capacity: Access to funding from banks and financial institutions.

Eligibility Criteria for Private Limited Company Online Registration

As per MCA guidelines:

  • Minimum two directors and shareholders required.
  • Shareholders can be natural persons or corporate entities; directors must be individuals.
  • Registered office address in India is mandatory.

Checklist for Private Limited Company Registration

Ensure the following criteria are met:

  • Minimum of two directors.
  • Directors must have DIN (Director Identification Number) and DSC (Digital Signature Certificate).
  • Memorandum of Association (MoA) and Articles of Association (AoA) drafted.
  • Details of the company’s registered office.

Documents Required for Private Limited Company Registration

Essential documents include:

  • Passport size photographs of directors.
  • Address proof and photo identification of directors.
  • Sample signatures.
  • Self-declaration of directorship.
  • Lease/rent agreement for the registered office.
  • NOC from the property owner.
  • Aadhaar card, PAN card, DIN, DSC.
  • MoA and AoA.

Steps to Register Your Private Limited Company

steps:

  1. Name Approval Process: Check name availability and file forms for approval.
  2. Get Your DSC and DIN: Procure DSC and DIN for directors.
  3. Filing and Incorporation: Submit MoA, AoA, and SPICe+ form for incorporation. Receive PAN and TAN post-registration.

Private Limited Company Registration Fees

Costs include government fees, stamp duty, and professional fees if engaged. Select from affordable packages for registration.

Post-Registration Compliances After Filing of FORM 3

Ensure compliance with:

  • Initial board meeting within 30 days.
  • Open a bank account in the company’s name.
  • Establish an official address within 30 days.
  • Display company name, use local language in business communications.
  • Appoint an auditor within 30 days.
  • Maintain statutory registers.
  • Issue share certificates within 60 days.
  • Maintain books of accounts per Section 128.
  • Obtain commencement of business certificate within 180 days.
  • Register copyrights and professional tax as necessary.

Tax Implications of Business Structures

Comply with monthly, quarterly, and yearly tax obligations based on income and business transactions.

Role of Company Directors and Shareholders in a Private Limited Company

Directors manage operations, make strategic decisions, and ensure legal compliance. Shareholders provide capital, elect directors, and participate in company decisions.

Ready to Take the Next Step?

Start your journey towards a successful Private Limited Company in India!

  • Get a Free Consultation: Connect with our expert team to discuss your specific needs and learn more about the registration process.
  • Request a Quote: We provide transparent and competitive pricing for our services.

Contact Us Today!

We look forward to helping you navigate the complexities of business registration and compliance services. Thank you for choosing SigmaTenders!

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